Exhibit 99
BIRMINGHAM, Alabama (February 13, 2001) Protective Life Corporation (NYSE:PL) announced fourth quarter results today. The Company's diluted operating income in the 2000 fourth quarter was $.58 per share compared to $.60 per share in the 1999 fourth quarter. For the year, the Company’s 2000 diluted operating income was $2.39 per share compared to $2.34 per share in 1999.
Drayton Nabers, Jr., Chairman of the Board and Chief Executive Officer of the Company states: “We had strong performance in our operating divisions in the fourth quarter with record quarterly earnings in the Individual Life, West Coast, and Financial Institutions Divisions. Overall for 2000, we were very pleased with outstanding sales growth. With lower short-term interest rates, the Company is gaining momentum in its spread businesses.”
The table below sets forth operating income before income tax by business segment for the periods shown:
OPERATING INCOME(LOSS) BEFORE INCOME TAX
FOR THE QUARTER ENDING DECEMBER 31
(IN THOUSANDS)
2000 1999
---- ----
Life Insurance
Individual Life $10,467 $ 7,488
West Coast 9,994 6,629
Acquisitions 14,270 11,799
Specialty Insurance Products
Dental Benefits 9,292 9,960
Financial Institutions 9,167 5,334
Retirement Savings and Investment Products
Stable Value Products 8,222 8,385
Investment Products 3,193 3,181
Corporate and Other (4,795) 9,560
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Total operating income before income tax $59,810 $62,336
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OPERATING INCOME BEFORE INCOME TAX
FOR THE YEAR ENDING DECEMBER 31
(IN THOUSANDS)
2000 1999
---- ----
Life Insurance
Individual Life $ 40,230 $ 32,125
West Coast 36,367 26,063
Acquisitions 52,762 63,671
Specialty Insurance Products
Dental Benefits 32,293 39,643
Financial Institutions 32,191 21,932
Retirement Savings and Investment Products
Stable Value Products 31,208 29,465
Investment Products 15,171 12,491
Corporate and Other 6,624 16,633
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Total operating income before income tax $246,846 $242,023
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Consolidated net income was $37.2 million in the 2000 fourth quarter compared to $40.9 million in the 1999 fourth quarter, and $153.5 million for all of 2000 compared to $151.3 million in 1999. Diluted net income was $.56 per share in the 2000 fourth quarter compared to $.62 per share in the 1999 fourth quarter, and $2.32 per share for all of 2000 compared to $2.29 per share in 1999.
At December 31, 2000, the Company's assets were approximately $15.1 billion. Share-owners' equity per share was $18.05 excluding $.83 per share of unrealized investment losses resulting from marking the Company's securities to market value.
Operating return on average equity for the year ending December 31, 2000, was 14.6%.
The table below sets forth divisional sales for the periods shown:
SALES
FOR THE YEAR ENDING DECEMBER 31
(IN MILLIONS)
2000 1999
---- ----
Life Insurance
Individual Life $ 92.1 $ 80.4
West Coast 69.0 58.8
Specialty Insurance Products
Dental Benefits 105.8 82.1
Financial Institutions 523.6 283.0
Retirement Savings and Investment Products
Stable Value Products 1,219.2 969.9
Investment Products 892.0 710.7
The sales statistics in the above table are used by the Company to measure the relative progress of its marketing efforts. These statistics were derived from the Company’s various sales tracking and administrative systems and were not derived from the Company’s financial reporting systems or financial statements. These statistics attempt to measure only one of many factors that may affect future divisional profitability, and therefore are not intended to be predictive of future profitability.
There will be a conference call today for management to discuss fourth quarter results at 10:00 a.m. Eastern. The public may listen to the call by calling 1-800-374-1664. A simultaneous web cast of the call will also be available on the Company’s web site at www.protective.com.
A recording of the call will be available from 1:00 p.m. Eastern February 13 until midnight February 14. You may access the recording by calling 1-800-642-1687 and giving the code number 24592.
Supplemental financial information is also available through “fax on demand” by calling 1-800-323- 6124.
This release includes “forward-looking statements” which express expectations of future events and/or results. All statements based on future expectations rather than on historical facts are forward-looking statements that involve a number of risks and uncertainties, and the Company cannot give assurance that such statements will prove to be correct. The factors which could affect the Company’s future results include, but are not limited to, general economic conditions and the following certain known trends and uncertainties: we operate in a mature, highly competitive industry, which could limit our ability to gain or maintain our position in the industry; a ratings downgrade could adversely affect our ability to compete; our policy claims fluctuate from year to year; we could be forced to sell illiquid investments at a loss to cover policyholder withdrawals; interest-rate fluctuations could negatively affect our spread income; insurance companies are highly regulated; a tax law change could adversely affect our ability to compete with non-insurance products; financial services companies are frequently the targets of litigation, including class action litigation, which could result in substantial judgements; our investments are subject to risks; our growth from acquisitions involves risks; we are dependent on the performance of others; and our reinsurance program involves risks. Please refer to Exhibit 99 of the Company’s most recent Form 10-K/10-Q for more information about these factors which could affect future results.